The White House, President George W. Bush Click to print this document

For Immediate Release
Office of the Press Secretary

Tax Relief Helps Economic Growth

Administration Actions Are Helping to Fuel Economic Recovery
  • The American economy grew at a rapid pace of 7.2 percent during the third quarter of this year - the best since 1984. The growth rate accelerated from a 3.3 percent rate in the second quarter.
  • The President's Jobs and Growth tax relief package helped fuel the surge in the economy in the third quarter. It brought economic activity to a higher level, which increases incomes and living standards for American workers.
  • The President's policies will continue to provide s ubstantial stimulus over the coming year. While most private forecasters predict the economy will not continue to grow as fast as it did in the third quarter, they expect it to be above the historical average.
  • Job creation has yet to take hold. But there are signs that the labor market is starting to improve, such as the recent decline in new claims for unemployment insurance and the recent increases in temporary employment.57,000 new jobs were created in September, the first gain in non-farm payroll employment since January.
  • Other promising signs for the economy include:
    • The value of U.S. stock markets has increased $2 trillion since the beginning of this year.
    • Disposable personal income is up 5.8 percent at an annual rate in 2003.
    • The U.S. homeownership rate was 68.4% in the third quarter-its highest level ever.
    • Productivity growth remains strong, which has bolstered business profits.
    • Orders of manufacturing goods have been increasing since earlier this year.
    • Shipments of durable goods have increased since this summer after a period of decline and stagnation. Orders have been above shipments since early 2003, suggesting future strengthening.
    • Consumer confidence has also increased. Measures of consumer sentiment are well above the levels seen just before the Iraq war.
  • America's economy experienced the unprecedented triple shock of a recession, economic disruption due to September 11 and the War on Terrorism, and corporate accounting scandals. President Bush acted promptly to help America's workers by providing tax relief to put more money in families' pockets and encourage businesses to grow and invest. Tax relief brought substantial savings to families and helped fight back the effects of the recession. Without the President's tax cuts, as many as 1.5 million additional Americans could have lost their jobs.
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